Eligible small and medium businesses, including not-for-profit organisations that employ people, may be able to access temporary cash flow support during the economic downturn associated with COVID-19 (novel coronavirus).

The ATO will provide tax-free cash flow boosts of between $20,000 and $100,000 to eligible businesses, delivered through credits in the activity statement system, when eligible businesses lodge their activity statements.

You will be eligible to receive the cash flow boost if you are a small or medium business entity, including not-for-profit organisations, sole traders, partnership, company or trust that:

• held an ABN on 12 March 2020 and continues to be active
• has an aggregated annual turnover under $50 million (generally based on prior year turnover)
• made eligible payments you are required to withhold from (even if the amount you need to withhold is zero).

Eligible payments include:

• salary and wages
• director fees
• eligible retirement or termination payments
• compensation payments
• voluntary withholding from payments to contractors

In addition, you must also have either:

• derived business income in the 2018–19 income year and lodged your 2019 tax return on or before 12 March 2020
• made GST taxable, GST-free or input-taxed sales in a previous tax period (since 1 July 2018) and lodged the relevant activity statement on or before 12 March 2020

All eligible entities that received initial cash flow boosts may be entitled to additional cash flow boosts.

Refer to the ATO’s website for more information about the cash flow boost.